Chinese Stocks Stage a Rally That’s Yet to Convince Global Funds

The MSCI China Index’s 27% gain since a January low mostly reflects a rotational play on cheap valuations, and Chinese earnings are yet to convince, according to Lombard Odier, Pictet Asset Management, and Fidelity International. Even optimists like abrdn plc are harping on the need for companies to show profit gains.

The MSCI China Index is currently trading at 10 times forward earnings, below its five-year average and 20.6 times for the S&P 500. The other driver for the recent gains lies in signs of more policy support from Beijing, in particular a desire to clear unsold homes in the depressed property sector. At the same time, the likelihood of US policy rates staying higher for longer has turned Chinese stocks into an alternative, with its tech names benefiting.

“Once seen as hunting ground for growth-focused investors, now Chinese equities are increasingly surfacing in value-focused portfolios,” said George Efstathopoulos, a portfolio manager at Fidelity. Still, “earnings need to deliver and for earnings to deliver we need to see consumer sentiment improving in China, something that remains somewhat fragile today.

इंडिया ताज़ा खबर, इंडिया मुख्य बातें

Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।

Chinese Stocks Stage a Rally That’s Yet to Convince Global FundsChinese stocks may have bottomed, but money managers are reluctant to return en masse.
स्रोत: BNNBloomberg - 🏆 83. / 50 और पढो »

Hong Kong’s Stocks Rally Even With Key Chinese Investors Absent(Bloomberg) -- Hong Kong’s world-beating stock rally is showing no signs of letting up even with Chinese investors, a key buying force, out of action. Most...
स्रोत: YahooFinanceCA - 🏆 47. / 63 और पढो »

Chinese Stock Rally Risks Fizzling Unless Tech Delivers EarningsThe bounceback in Chinese stocks from their multi-year lows risks running out of steam unless the nation’s tech giants can deliver on their earnings next week.
स्रोत: BNNBloomberg - 🏆 83. / 50 और पढो »

Stock market today: Stocks gain as Fed rate hopes fuel continued rallyStocks rallied at the end of last week, getting a boost from a 'Goldilocks' jobs report.
स्रोत: YahooFinanceCA - 🏆 47. / 63 और पढो »

Stock market today: Stocks rally after Fed decision as Powell soothes rate nervesFed day arrives with the focus on what clues Powell will offer to the chances for rate cuts this year.
स्रोत: YahooFinanceCA - 🏆 47. / 63 और पढो »

Stock market news: Tech rally drives up stocks as earnings roll inA renewed rally in some of the world’s largest technology companies propped up the U.S. stock market, with traders weighing another big batch of corporate earnings.
स्रोत: BNNBloomberg - 🏆 83. / 50 और पढो »